COVID-19 UPDATE: Orr & Reno PPP Loan + Forgiveness EstimatorApr 17, 2020
Orr & Reno attorneys have put together an Orr & Reno PPP Loan + Forgiveness Estimator for clients to use as a resource with PPP Loans. The estimator is based on the language in the CARES Act and the most recent guidance from the SBA on how to apply for PPP Loans and how the SBA might determine forgiveness of some or all of a borrower’s PPP Loan.
The Treasury Department and the SBA continue to release new and revised guidance on the PPP Loan program, particularly regarding the forgiveness of PPP Loans. So this Estimator is conceptual in nature. A borrower’s actual forgiveness will be based on many factors, some of which likely have not yet even been developed by the SBA and Treasury. But the Estimator should be helpful for borrowers to work through the possible loan forgiveness scenarios. As the SBA updates its rules we will refine the Calculator.
4/15/2020 Update: This Estimator was revised and updated based on additional guidance and clarification from the SBA. The major change to the Estimator was to incorporate the Interim Final Rule released on April 14, 2020, which clarified how the SBA will treat self-employment income for PPP Loan applications and for PPP Loan forgiveness. As a result of that rule, this Estimator should not be used by Schedule C filers.
Please understand that this is a tool and not a guaranty of your ultimate forgiveness. This post and the Estimator should not be seen as legal advice. The Estimator should not be relied upon as a final determination of the forgiveness amount of any individual PPP Loan. Borrowers should work with their lenders to determine the forgivable amount of their loan. This post does not create an attorney-client relationship.